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Home Main Forums General Discussion The government isn’t a business or household.

  • mmonk (4155 posts)

    The government isn’t a business or household.

    Democrats should reject ‘pay-go’.

    In an outline of the legislative agenda House Democrats plan to pursue should they win the majority this election, Minority Leader Nancy Pelosi has promised to bring back the “pay-go”mandate. This rule basically means that Congress can authorize new government payments only if it “finds the money” from the private sector or cuts some other government program. In other words, it prohibits our nation from deploying our sovereign currency — the U.S. dollar — in the service of the country.

    By tying her party to this misguided ordinance, Pelosi has committed a major act of self-sabotage.

    To start, the “pay-go” rules established by Congress serve no public purpose. In a scathing article in The Intercept, David Dayen outlines the economic and political folly of this kind of policy. There is nothing fiscally responsible about tying public investments to tax receipts. The belief that the issuer of a currency should operate under the same rules as households and businesses is fundamentally misguided. Businesses and households alike borrow money for investing and spending, respectively. But our federal government is not like a household or a business — it makes the money it invests.

    Let me be very clear: Congress has the power to create dollars. It never needs to receive back a dollar it previously created before it can create another one. It has a limitless capacity to deploy the nation’s currency in the service of public needs. Every time Congress authorizes a payment, the Department of the Treasury will make that payment via its account at the Federal Reserve. There will never be a payment that Congress authorizes that won’t be paid fully and without default, as the only way it could default is by choice.

    Edited to paste.


    Pastiche, 3FingerBrown, Land of Enchantment and 13 othersHomerRamone, xynthee, GZeusH, 99thMonkey, Cleita, Johnny Rash, Enthusiast, Gryneos, Phlem, Ohio Barbarian, canoeist52, OCMI, jwirr like this

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12 replies
  • chknltl (1200 posts)

    1. Nor should it be run as such…contrary to popular belief.

  • Ohio Barbarian (13463 posts)

    2. It is a good editorial, though I would go further and say the reason Nancy

    Pelosi is insisting on pay-go is because she is a Vichy Democrat and she wants Congress to be impotent when it comes to helping anyone other than her donors.

    BTW, if you’re still having pasting problems, I can edit your post with the first four paragraphs from the article if you would like me to do so. At least, I think that’s one of my new superpowers.

    No man ought to stay poor so another man can get rich. --Newton Knight
    • nevereVereven (5886 posts)

      3. +100

      Trump is a fool who may yet blunder us into war; the Dems and the Deep State cabal would give us war by design.

    • mmonk (4155 posts)

      4. Thanks.

    • sadoldgirl (3035 posts)

      8. Well, she admitted to an open forum that "we are all capitalists."

      Thus we cannot expect anything else from her.

      (Btw, sorry about the weather for your trip! Right now we have snow

      coming down.)

      • Ohio Barbarian (13463 posts)

        12. Yes she did, and I didn't expect anything else from her. Thanks for the

        weather mention; it was in the 30s and 40s in Denver with drizzle coming down when we were there; now I’m back in Cleveland and it’s in the 80s and the A/C is on. Go figure. :shrug:

        No man ought to stay poor so another man can get rich. --Newton Knight
  • ASimpleGame (966 posts)

    5. Let me take a wild guess; the one exception would be the military budget?

    Pelosi finally takes the veil off and reveals she is a full blown conservative Republican.

  • Enthusiast (16201 posts)

    6. Why should the least popular Democrat be our guide?

    "I got a great big pointed fang Which is my Zomby Toof My right foot's bigger than my other one is Like a reg'lar Zomby Hoof If I raid your dormitorium Don't try to remain aloof . . ." The Zombie Woof
  • Gryneos (2698 posts)

    7. Thank you!

    I tell people all the time that governments, all governments, do not work like a business. They thrive on debt and aren’t concerned about paying it off now while they bring in an income unequal to it.

    I recall someone on SV posting a great video some years back where a young man explained exactly how this kind of economics worked for governments. I don’t even know what to search on to find it again, only that it was like this editorial in content. Videos do seem to teach people better than reading about it…

    "That's Jeff Vader, that is."__"I am not Jeff Vader, I am Darth Vader."__"What, Jeff Vader runs the Deathstar?"__"No, Jeff… No, I run the Deathstar."__"You Jeff Vader?"__"No, I'm Darth Vader!"__"Are you his brother? Can you get his autograph?"__"I can't get it… No, I'm… All right, I'm Jeff Vader! I'm Jeff Vader!"__"Can I have your autograph?"__"No, fuck off, or I'll kill you with a tray! Give me penne a la arabiata or you shall die. And you, and everyone in this canteen! Death by tray it shall be!" Eddie Izzard, Circle
  • Cleita (3610 posts)

    9. Yep. Been trying to convince my family about this for years.

    However, now that this country is being run like a business, they don’t like it.

  • Johnny Rash (2068 posts)

    10. Deploying our Sovereign CURRENCY is the most important issue today

    Any politicians avoiding to address this issue before or after the election is simply on the TAKE methink!  :grr:

  • Tierra y Libertad (3328 posts)

    11. Government, even in its best state, is but a necessary evil; i

    in its worst state an intolerable one.   Thomas Paine


    But such is the irresistible nature of truth, that all it asks, and all it wants is the liberty of appearing. Thomas Paine